WOODSTOCK – On his blog "Illinoyances," State Rep. Steve Reick (R-Woodstock) reported on an idea that's making its way through the Illinois House that would set up a state-funded insurance company to pay workers' comp claims. The concept is if a state-funded entity enters the market, cheaper prices will result for all.
The effort promises to repay the taxpayers in five years. Right…Rep. Reick wrote, it's just another very expensive boondoggle:
Last week, the Democrats in the House rammed through a piece of legislation (HB 2622) in which the state will loan $10 million to a new “public” workers’ comp insurance company to compete with the over 300 companies now licensed to sell such insurance in Illinois.
According to the sponsors, we’re going to mimic such companies now operating in a number of other states. The bill does not address the causation standards in Illinois, which result in employers paying, on average, $2.23 per $100 in payroll in workers’ comp premiums. They think that by taking the “profit” out of workers’ comp insurance, they can drive down premiums.
Read the rest of what Rep. Reick has to say about the plan HERE.
The measure passed the Illinois House along party lines, and is now expected to be considered in the Democrat-controlled Illinois Senate.
